Certified Research Administrator Practice Test

CRA exam Format | Course Contents | Course Outline | exam Syllabus | exam Objectives

The Certified Research Administrator® Examination is a computer-based examination composed of a maximum of 250 multiple-choice, objective questions with a total testing time of four (4) hours. The content for the examination is described in the Body of Knowledge on the next page.
The questions for the examination are obtained from individuals with expertise in research administration and are reviewed for construction, accuracy, and appropriateness by the RACC.
RACC, with the advice and assistance of the Professional Testing Corporation, prepares the examination.
The Certified Research Administrator® Examination will be weighted in approximately the following manner:
I. Project Development and Administration 30%
II. Legal Requirements and Sponsor Interface 30%
III. Financial Management 25%
IV. General Management 15%

The Research Administrators Certification Council (RACC) promotes the concept of voluntary certification
by examination for all research and sponsored programs administrators. After passing this examination,
an individual earns the Certified Administrator® (CRA®) designation. Certification is just one part of a
process called “credentialing”. It focuses specifically on the individual and is one indication of current
competence in this specialized field. Certification in research and sponsored programs administration is
highly valued and provides formal recognition of basic knowledge in this field.

The Certified Research Administrator (CRA) credential means that you demonstrate a level of knowledge of all aspects of research administration. It is obtained by qualifying for and taking the CRA exam, which is administered by an independent certifying body, the Research Administrators Certification Council (RACC) http://www.cra-cert.org/(link is external). The CRA exam is rigorous, and it must be taken at a designated site and it is administered through Professional Testing Corporation. In a four-hour period, test-takers must answer 250 questions that cover the full spectrum of research administration.

I. PROJECT DEVELOPMENT AND ADMINISTRATION
- Collection and Dissemination of Information
- Marketing - Internal and External
- Identification of funding opportunities
- Identification of internal capabilities
- Resource Documents, Application Materials, and Information
- Dissemination of Information/Publications
- Liaison
- Internal
- Funding sources
- Cooperative arrangements
- Public Relations
- Agency Structure and Practice
- Proposal Development
- Proposal Writing
- Budget Preparation
- Documentation to Meet Sponsor Requirements
- Internal Proposal Processing
- Negotiation Techniques
- Contracting Basics
- Administration of Awards
- Monitoring Activity
- Reports on Progress and Financial Status
- Continuation Funding
- Close Out
- Changes in Project Status
- Award Instruments
- Ethics and Professionalism
- Conflict of Interest
- Bioethics
- Human Subjects
- Animal Care
- Professional
- Intellectual Property
- Patents
- Copyrights
- Licensing
- Commercialization
- Data
- Proprietary Information
- Electronic Research Administration
II. LEGAL REQUIREMENTS AND SPONSOR INTERFACE
- Regulations and Statutes
- Overview of Regulatory and Legislative Process
- Governmental Relations
- Mandated Requirements
- Compliance - Federal Sponsors and General Management Practices
- Representations and Certifications
- Federal Drug-Free Workplace and Drug-Free Schools
- Federal Debt Delinquency
- Federal Debarment/Suspension
- Lobbying
- Conflicts of interest
- Scientific misconduct
- Other
- Federal Management Requirements
- Federal Acquisition Regulations
- Federal Assistance Administrative Regulations
- 2 CFR (Uniform Guidance and OMB Circulars)
- Institutional Committees
- Institutional Review Board
- Institutional Animal Care and Use Committee
- Other
- Federal Disclosure Requirements
- Institutional and Sponsor Publication Requirements
- HIPAA Health
- International Traffic in Arms Regulation (ITAR)/Export Administration Regulations (EAR)
- Federal/Sponsor Appeal Procedures
III. FINANCIAL MANAGEMENT
- Budgeting/Accounting
- Proposal Development
- Accounting Management
- Accounting systems/management information systems
- Sponsor documents
- Internal documents
- Accounting processes
- Effort reporting
- Service centers
- Program income
- Internal controls
- Cost transfers
- Rebudgeting
- Costs
- Direct Costs
- Indirect Costs
- Indirect Cost Rates
- Development
- Negotiation
- Cost Sharing
- Sponsor Financial Reporting
- Audit
- Types
- Internal and External Requirements
- Allowable Costs
IV. GENERAL MANAGEMENT
- Facility Management
- Specialized Facilities
- Property, Utility, and Equipment Management
- Inventory control
- Sale/disposal of equipment and property
- Lease vs. purchase
- Capital expenditures
- Sharing/pooling
- Central services
- Safety and Health Requirements and Procedures
- Hazardous and Nonhazardous Materials
- Security
- Renovation and Construction -Differentiation & Impact analysis
- Biohazards
- Other
- Contracts and Purchasing
- Basic Legal Concepts
- Management of Contracts and Purchasing
- Termination and Appeals
- Records Management
- Human Resource Management
- Employee/Labor Relations
- Career Development/Training
- Staffing
- Affirmative Action/Equal Employment Opportunity
- Compensation

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Successful budget process relies greatly upon effective communications. Strong
communication can contributeto improved information quality, lower implementation costs,
less resistance and an enhanced decision-making process. In fact, an effort to improve
communications could be as simple as documenting the budget process timelines,
managerial guidelines, and budget assumptions.
QUESTION: 224
There is typically no fixed time period for budget coverage.
A. True
B. False
Answer: A
Budgets are usually prepared for departments and for the organization as a whole. There is
no fixed time period for budget coverage - they can be prepared to cover any time period as
long as they meet the needs. They may be prepared top-down or bottom-up, although the
bottom-up approach is believed to be more capable of leading to a successful budgeting
process.
QUESTION: 225
A budget can be:
A. static or flexible.
B. simple or linked.
C. correlated or embedded.
D. None of the choices.
Answer: A
A budget can be static or flexible. A static budget is prepared for a single level of activity,
while a flexible budget is prepared for any level of activity within the relevant range. In any
case, differences between budgeted and real amounts are known as budget variances.
You don�t investigate all variances. You only spend time on variances that are significant.
QUESTION: 226
What kind of budget is usually prepared for a single level of activity?
108
A. static
B. flexible
C. simple
D. linked
E. correlated
F. embedded
G. None of the choices.
Answer: A,B
A budget can be static or flexible. A static budget is prepared for a single level of activity,
while a flexible budget is prepared for any level of activity within the relevant range. In any
case, differences between budgeted and real amounts are known as budget variances.
You don�t investigate all variances. You only spend time on variances that are significant.
QUESTION: 227
Which of the following refers to the process whereby organizations use different cost
accounting techniques to report or control the various costs of doing business?
A. Activity management
B. Cost management
C. Cost accounting
D. Budget management
E. Process management
F. None of the choices.
Answer: B
Cost management is the process whereby organizations use different cost accounting
techniques to report or control the various costs of doing business. Cost accounting refers to
the process of tracking, recording and analyzing costs associated with the activity of an
organization, where cost is defined as 'required time or resources. Costs are usually
measured in units of currency by convention, and there are at least three approaches to
costing, which are standard costing, activity- based costing, and throughput accounting.
QUESTION: 228
Which of the following refers to the process of tracking, recording and analyzing costs
associated with the activity of an organization?
109
A. Activity management accounting
B. Proactive management accounting
C. Cost accounting
D. Budget management accounting
E. Process management accounting
F. None of the choices.
Answer: C
Cost management is the process whereby organizations use different cost accounting
techniques to report or control the various costs of doing business. Cost accounting refers to
the process of tracking, recording and analyzing costs associated with the activity of an
organization, where cost is defined as 'required time or resources. Costs are usually
measured in units of currency by convention, and there are at least three approaches to
costing, which are standard costing, activity- based costing, and throughput accounting.
QUESTION: 229
With cost accounting, possible approaches may include (choose all that apply):
A. standard costing
B. activity-based costing
C. throughput accounting
D. linked accounting
E. linked costing
F. None of the choices.
Answer: A,B,C
Cost management is the process whereby organizations use different cost accounting
techniques to report or control the various costs of doing business. Cost accounting refers to
the process of tracking, recording and analyzing costs associated with the activity of an
organization, where cost is defined as 'required time or resources. Costs are usually
measured in units of currency by convention, and there are at least three approaches to
costing, which are standard costing, activity-based costing, and throughput accounting.
QUESTION: 230
Standard costing simplifies accounting.
110
A. True
B. False
Answer: A
The idea of standard costing came from the need for managers to make decisions about
products and pricing in simple ways. Since most costs were believed to be variable,
managers could simply total the variable costs for a product and use this as a rough guide
for decision-making. Standard costing took such an idea further by dividing the fixed costs
by the number of items produced, and treating the result as if it were a variable cost. This
way, managers may effectively ignore the fixed costs. The terms "direct costs" and
"indirect costs" often replace the variable/fixed terminology for better reflecting the way
allocation of overhead is actually calculated.
QUESTION: 231
Which of the following is a drawback of standard costing?
A. it tends to slightly distort the resulting unit cost.
B. it tends to greatly distort the resulting unit cost.
C. it is costly to implement.
D. it is always not accurate.
E. None of the choices.
Answer: A
Standard costing simplifies the decision process to a great extent. However, it tends to
slightly distort the resulting unit cost. If in the context of a mass- production industry where
only one product line is produced and where fixed costs are low, the distortion could be
minor and tolerable.
QUESTION: 232
Which of the following is basically costing by activities?
A. ABC
B. BAA
C. ACS
D. ADR
111
E. LCC
F. None of the choices.
Answer: A
Simply said, Activity-based costing (ABC) is costing by activities - those activities that are
regularly performed inside an organization. With this approach, accountants assign 100%
of each employees time to the different activities performed at work so that the total cost
spent on each activity can be determined by summing up the percentage of each worker's
salary spent on that activity. Since each product and service is produced and delivered via
the activities performed by the employees at work, different activities can be assigned to
different products using proper allocation methods. With the resulting activity cost data,
one might determine where to focus the operational improvement efforts.
QUESTION: 233
Activity-based costing can help in focusing the operational improvement efforts.
A. True
B. True only with static cost data
C. True only with dynamic cost data
D. False
Answer: A
Simply said, Activity-based costing (ABC) is costing by activities - those activities that are
regularly performed inside an organization. With this approach, accountants assign 100%
of each employees time to the different activities performed at work so that the total cost
spent on each activity can be determined by summing up the percentage of each worker's
salary spent on that activity. Since each product and service is produced and delivered via
the activities performed by the employees at work, different activities can be assigned to
different products using proper allocation methods. With the resulting activity cost data,
one might determine where to focus the operational improvement efforts.
QUESTION: 234
Before performing ABC, what should be defined to document the organization's policies,
practices, methods, measures, costs and their interrelationships at a
particular location at a particular point in time?
112
A. baseline for business process improvement
B. checklist for business process improvement
C. milestones for business process improvement
D. mission statements for business process improvement
E. None of the choices.
Answer: A
Before performing ABC, a baseline for business process improvement should be defined to
document the organization's policies, practices, methods, measures, costs and their
interrelationships at a particular location at a particular point in time. Through this exercise,
activity inputs and outputs across functional lines of business can be identified. One
important function of ABC is the identification of value added activities and non-value
added activities. Value added activities are those for which the customers are usually
willing to pay for the service. Non-value added are activities that create no value in return.
QUESTION: 235
One important function of ABC is the identification of value added activities.
A. True
B. False
Answer: A
Before performing ABC, a baseline for business process improvement should be defined to
document the organization's policies, practices, methods, measures, costs and their
interrelationships at a particular location at a particular point in time. Through this exercise,
activity inputs and outputs across functional lines of business can be identified. One
important function of ABC is the identification of value added activities and non-value
added activities. Value added activities are those for which the customers are usually
willing to pay for the service. Non-value added are activities that create no value in return.
QUESTION: 236
Which of the following refers to the total cost of ownership of a product over its useful life?
A. ABC
B. BAA
113
C. ACS
D. ADR
E. LCC
F. None of the choices.
Answer: E
Life-cycle cost (LCC) refers to the total cost of ownership of a product over its useful life.
This kind of costing method is especially popular for engineering projects where a new
product is being designed, developed, manufactured, and tested for years before formal
production and marketing can take place. Do note that the time period in which each cost
component is realized can differ a lot depending on the nature of the product in question,
meaning products with the same total cost can have totally different cost distribution over
time.
QUESTION: 237
Which of the following is an alternative to cost accounting?
A. Throughput accounting
B. Performance accounting
C. Progress accounting
D. Checkpoints accounting
E. None of the choices.
Answer: A
Throughput accounting is an alternative to cost accounting. It is not based on Standard
Costing or Activity Based Costing. As a matter of fact, it is not costing and it does not
allocate costs to products and services. The concept of throughput accounting begins with
the idea that each organization has a goal and that better decisions increase its chance of
achieving the goal.
QUESTION: 238
The concept of throughput accounting begins with the idea that each organization has a
goal and that better decisions increase its chance of achieving the goal.
A. True
114
B. False
Answer: A
Throughput accounting is an alternative to cost accounting. It is not based on Standard
Costing or Activity Based Costing. As a matter of fact, it is not costing and it does not
allocate costs to products and services. The concept of throughput accounting begins with
the idea that each organization has a goal and that better decisions increase its chance of
achieving the goal.
QUESTION: 239
Which of the following refers to the process in which companies evaluate various aspects
of their business processes in relation to best practice within their own industry?
A. Benchmarking
B. Q-marking Check- marking
C. Check-pointing
D. Auditing
E. None of the choices.
Answer: A
Benchmarking is a process in which companies evaluate various aspects of their business
processes in relation to best practice within their own industry. This allows ones to develop
plans on how to adopt such best practice. Although benchmarking can be a one-off event, it
is often treated as a continuous process.
QUESTION: 240
Which of the following generally refers to the process by which the efforts of all personnel
responsible for an acquisition are coordinated through a comprehensive plan for fulfilling
the acquisition in a timely and effective manner, and to obtain competition to the maximum
extent practicable with due regard to the nature of the supplies or services that are in need?
A. Acquisition planning
B. Research planning
C. Coordination planning
D. Grant Administration Planning
E. None of the choices.
115
Answer: A
"Acquisition planning" generally refers to the process by which the efforts of all personnel
responsible for an acquisition are coordinated through a comprehensive plan for fulfilling
the acquisition in a timely and effective manner, and to obtain competition to the
maximum extent practicable with due regard to the nature of the supplies or services that
are in need. It usually involves the development of the overall strategy for managing the
acquisition, often using knowledge gained from prior acquisitions for further refining
requirements and acquisition strategies.
116

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